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Kraft Heinz to Report Q3 Earnings: Essential Insights for Investors
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Key Takeaways
Kraft Heinz is expected to post lower Q3 revenues and earnings than those reported in the year-ago quarter.
Weak demand, cautious consumer spending and unfavorable promotional timing may hurt KHC's sales.
Higher investments and manufacturing costs may pressure margins, Taste Elevation initiatives offer support.
The Kraft Heinz Company (KHC - Free Report) is likely to witness top and bottom-line declines when it reports third-quarter 2026 earnings on Nov. 4, before the opening bell. The Zacks Consensus Estimate for revenues is pegged at $6.1 billion, indicating a 2.9% decrease from the prior-year quarter’s reported figure.
The consensus mark for earnings has been unchanged over the past 30 days at 43 cents per share, implying a decline of 29.5% from the year-ago quarter’s reported figure. KHC has a trailing four-quarter earnings surprise of 9.6%, on average.
Kraft Heinz Company Price, Consensus and EPS Surprise
Kraft Heinz's third-quarter top-line performance is likely to have remained under pressure. On its second-quarter earnings call, management projected organic net sales to decline 1-2.5% year over year, reflecting the reversal of inventory shipments pulled forward into the second quarter and unfavorable promotional timing. Continued softness in meats and meals, cautious consumer spending and SNAP-related headwinds might have further weighed on volumes. Our model suggests volumes to slip 1.8% in the third quarter of 2026.
The bottom line is likely to have faced pressure from increased investments across marketing, pricing, product improvements and research and development. Management anticipates a 23-25% decline in adjusted operating income, reflecting a further step-up in investments. Higher manufacturing and logistics costs, alongside increased promotional spending and variable compensation expenses, might have pressured margins despite ongoing productivity initiatives.
However, Kraft Heinz's strategic initiatives are likely to have provided some support during the quarter. Improving market-share trends in Taste Elevation, backed by increased advertising, product innovation and stronger retail execution, might have supported performance. Continued investments in packaging enhancements and e-commerce capabilities might have further strengthened consumer engagement.
Earnings Whispers for KHC
Our proven model does not conclusively predict an earnings beat for Kraft Heinz this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here.
Kraft Heinz currently has a Zacks Rank #4 (Sell) and an Earnings ESP of +0.93%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Some Stocks With a Favorable Combination
Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.
The Zacks Consensus Estimate for BJ’s Wholesale Club’s upcoming quarter’s earnings per share is pegged at 1.22 cents, implying 5.2% year-over-year growth. The consensus estimate for quarterly revenues is pegged at $5.9 billion, which indicates an increase of 11.1% from the figure reported in the prior-year quarter. BJ has a trailing four-quarter earnings surprise of 4.8%, on average.
Sysco Corporation (SYY - Free Report) currently has an Earnings ESP of +2.46% and a Zacks Rank of 3. The Zacks Consensus Estimate for Sysco’s upcoming quarter’s earnings per share is pegged at $1.17, which implies a 1.7% increase year over year.
The consensus estimate for Sysco’s quarterly revenues is pegged at $22.2 billion, which indicates a surge of 4.9% from the figure reported in the prior-year quarter. SYY delivered a trailing four-quarter earnings surprise of around 1%, on average.
General Mills, Inc. (GIS - Free Report) currently has an Earnings ESP of +0.26% and a Zacks Rank of 3. The Zacks Consensus Estimate for General Mills’ upcoming quarter’s EPS is pegged at 96 cents, implying a 12.7% year-over-year decrease.
The Zacks Consensus Estimate for quarterly revenues is pegged at $4.7 billion, which indicates a decrease of 2.8% from the figure reported in the prior-year quarter. GIS has a trailing four-quarter earnings surprise of 3.6%, on average.
View the Zacks #1 Rank List
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Kraft Heinz to Report Q3 Earnings: Essential Insights for Investors
Key Takeaways
The Kraft Heinz Company (KHC - Free Report) is likely to witness top and bottom-line declines when it reports third-quarter 2026 earnings on Nov. 4, before the opening bell. The Zacks Consensus Estimate for revenues is pegged at $6.1 billion, indicating a 2.9% decrease from the prior-year quarter’s reported figure.
The consensus mark for earnings has been unchanged over the past 30 days at 43 cents per share, implying a decline of 29.5% from the year-ago quarter’s reported figure. KHC has a trailing four-quarter earnings surprise of 9.6%, on average.
Kraft Heinz Company Price, Consensus and EPS Surprise
Kraft Heinz Company price-consensus-eps-surprise-chart | Kraft Heinz Company Quote
Things to Know About KHC’s Upcoming Results
Kraft Heinz's third-quarter top-line performance is likely to have remained under pressure. On its second-quarter earnings call, management projected organic net sales to decline 1-2.5% year over year, reflecting the reversal of inventory shipments pulled forward into the second quarter and unfavorable promotional timing. Continued softness in meats and meals, cautious consumer spending and SNAP-related headwinds might have further weighed on volumes. Our model suggests volumes to slip 1.8% in the third quarter of 2026.
The bottom line is likely to have faced pressure from increased investments across marketing, pricing, product improvements and research and development. Management anticipates a 23-25% decline in adjusted operating income, reflecting a further step-up in investments. Higher manufacturing and logistics costs, alongside increased promotional spending and variable compensation expenses, might have pressured margins despite ongoing productivity initiatives.
However, Kraft Heinz's strategic initiatives are likely to have provided some support during the quarter. Improving market-share trends in Taste Elevation, backed by increased advertising, product innovation and stronger retail execution, might have supported performance. Continued investments in packaging enhancements and e-commerce capabilities might have further strengthened consumer engagement.
Earnings Whispers for KHC
Our proven model does not conclusively predict an earnings beat for Kraft Heinz this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here.
Kraft Heinz currently has a Zacks Rank #4 (Sell) and an Earnings ESP of +0.93%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Some Stocks With a Favorable Combination
Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.
BJ’s Wholesale Club Holdings, Inc. (BJ - Free Report) has an Earnings ESP of +2.54% and currently carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for BJ’s Wholesale Club’s upcoming quarter’s earnings per share is pegged at 1.22 cents, implying 5.2% year-over-year growth. The consensus estimate for quarterly revenues is pegged at $5.9 billion, which indicates an increase of 11.1% from the figure reported in the prior-year quarter. BJ has a trailing four-quarter earnings surprise of 4.8%, on average.
Sysco Corporation (SYY - Free Report) currently has an Earnings ESP of +2.46% and a Zacks Rank of 3. The Zacks Consensus Estimate for Sysco’s upcoming quarter’s earnings per share is pegged at $1.17, which implies a 1.7% increase year over year.
The consensus estimate for Sysco’s quarterly revenues is pegged at $22.2 billion, which indicates a surge of 4.9% from the figure reported in the prior-year quarter. SYY delivered a trailing four-quarter earnings surprise of around 1%, on average.
General Mills, Inc. (GIS - Free Report) currently has an Earnings ESP of +0.26% and a Zacks Rank of 3. The Zacks Consensus Estimate for General Mills’ upcoming quarter’s EPS is pegged at 96 cents, implying a 12.7% year-over-year decrease.
The Zacks Consensus Estimate for quarterly revenues is pegged at $4.7 billion, which indicates a decrease of 2.8% from the figure reported in the prior-year quarter. GIS has a trailing four-quarter earnings surprise of 3.6%, on average.